The Ministry of Finance has required that bond issuers utilize resources to fulfill their commitments to investors, according to Deputy Minister Nguyen Duc Chi.

Only some VND331 trillion ($13.5 billion) worth of bonds had been issued this year as of November 25, a year-on-year decline of 31.6 per cent, he told the government’s regular press conference in Hanoi on December 1.

Issuers’ bond buybacks ahead of schedule also reflect negativity in the market, with some VND161 trillion ($6.6 billion) repurchased as of November 25, exceeding last year’s amount by 14 per cent.

Violations by some issuers and commercial banks have eroded confidence in the market and rumors also have an adverse effect, he said, noting that issuers face problems in liquidity, capital and credit.

The government has issued a decree on enhancing publicity and transparency in the market, handling problems and protecting the rights and interests of investors as part of measures to help stabilize and develop the bond market, Mr. Chi said.

It has also ordered a review and necessary supplements to deal with changes in the market.